Cruising in Europe This Summer - Bring Lots of Dollars
Yikes!
That's all we have to say about the continuing decline of the U.S. dollar, which hit yet another all-time low against the euro today as it breached the psychologically important $1.50 to the euro mark for the first time.
The dollar now has lost 40% of its value in Europe since 2001, when it took just 91 cents to buy a euro. The dollar's purchasing power in Europe has dropped 12% in just the last year alone.
What does this all mean for you, dear reader? For starters, if you're planning a cruise in Europe this summer, be prepared for sticker shock when you get off the ship.
Everything from tickets to the Vatican in Rome to that cafe au lait along the waterfront of Cannes, France will cost dollar-toting cruisers more than a year ago. The 14 euro per person ticket to the Vatican, for instance, translates to $21 per person at today's exchange rate. A year ago, the same 14 euro ticket would have equaled $18.50 per person. In 2001, the same ticket would have set you back just $13 per person.
The good news for cruisers, of course, is that the biggest cost of a cruise vacation in Europe, the cruise itself, isn't all that affected by the gyrations of the dollar. Major lines catering to North Americans set prices in dollars, not euros, and since much of their fixed costs are in dollars (including shipbuilding costs and crew salaries), they aren't forced to increase pricing when the dollar drops.
Indeed, cruising as a way to see Europe is looking ever better in comparison to staying in hotels on land as the dollar sags. When calculated in dollars, European hotel and land tour prices have shot through the roof in recent years while European cruise costs have grown more modestly.
Another factor keeping European cruise prices in check: Cruise ship capacity in Europe is soaring -- up 23% this year -- forcing lines to offer deals to fill all the extra space.
Yikes!
That's all we have to say about the continuing decline of the U.S. dollar, which hit yet another all-time low against the euro today as it breached the psychologically important $1.50 to the euro mark for the first time.
The dollar now has lost 40% of its value in Europe since 2001, when it took just 91 cents to buy a euro. The dollar's purchasing power in Europe has dropped 12% in just the last year alone.
What does this all mean for you, dear reader? For starters, if you're planning a cruise in Europe this summer, be prepared for sticker shock when you get off the ship.
Everything from tickets to the Vatican in Rome to that cafe au lait along the waterfront of Cannes, France will cost dollar-toting cruisers more than a year ago. The 14 euro per person ticket to the Vatican, for instance, translates to $21 per person at today's exchange rate. A year ago, the same 14 euro ticket would have equaled $18.50 per person. In 2001, the same ticket would have set you back just $13 per person.
The good news for cruisers, of course, is that the biggest cost of a cruise vacation in Europe, the cruise itself, isn't all that affected by the gyrations of the dollar. Major lines catering to North Americans set prices in dollars, not euros, and since much of their fixed costs are in dollars (including shipbuilding costs and crew salaries), they aren't forced to increase pricing when the dollar drops.
Indeed, cruising as a way to see Europe is looking ever better in comparison to staying in hotels on land as the dollar sags. When calculated in dollars, European hotel and land tour prices have shot through the roof in recent years while European cruise costs have grown more modestly.
Another factor keeping European cruise prices in check: Cruise ship capacity in Europe is soaring -- up 23% this year -- forcing lines to offer deals to fill all the extra space.
posted by The Cruise Cafe | 7:54 PM
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